Bond Calculator
Calculate bond yield to maturity, current yield, price, duration, and total return. Advanced features include accrued interest and tax-equivalent yield for municipal bonds.
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Bond Calculator
Calculate bond prices, yields (current yield, YTM), duration, and interest rate risk for treasury bonds, corporate bonds, and municipal bonds.
Bond Details
Face value at maturity (typically $1,000)
Annual interest rate on face value
Time until bond matures and face value is repaid
How often interest is paid (US Treasury bonds pay semi-annually)
What you pay for the bond today
Results
Bond Summary
Yield Types Explained
| Yield Type | Rate | Meaning |
|---|---|---|
| Coupon Rate | 5.00% | Fixed interest on face value |
| Current Yield | 5.26% | Annual return on purchase price |
| Yield to Maturity | 5.66% | Total return if held to maturity |
Interest Rate Risk
A 1% increase in interest rates would decrease the bond price by approximately 7.71%
Price Impact from Rate Changes
| Rate Change | Est. Price Change | New Price |
|---|---|---|
| -1.0% | +7.71% | $1,023.24 |
| -0.5% | +3.85% | $986.62 |
| +0.5% | -3.85% | $913.38 |
| +1.0% | -7.71% | $876.76 |
Cash Flow Schedule
| Period | Years | Coupon | Principal | Present Value |
|---|---|---|---|---|
| 1 | 0.50 | $25.00 | - | $24.31 |
| 2 | 1.00 | $25.00 | - | $23.64 |
| 3 | 1.50 | $25.00 | - | $22.99 |
| ... (14 more periods) ... | ||||
| 18 | 9.00 | $25.00 | - | $15.13 |
| 19 | 9.50 | $25.00 | - | $14.71 |
| 20 | 10.00 | $25.00 | $1,000.00 | $586.48 |
Understanding Bond Pricing
Price vs Yield Relationship
Bond prices and yields have an inverse relationship. When interest rates rise, bond prices fall. When interest rates fall, bond prices rise.
Premium vs Discount
- Premium: Price > Face Value - The coupon rate is higher than market rates
- Discount: Price < Face Value - The coupon rate is lower than market rates
- Par: Price = Face Value - The coupon rate equals market rates
Duration & Interest Rate Risk
Duration measures a bond's sensitivity to interest rate changes. A bond with a modified duration of 7.7 will decrease in value by approximately 7.7% for every 1% increase in interest rates.
Key Financial Terms
Understand the essential concepts behind this calculator
Bond
A fixed-income investment where you loan money to a government or corporation in exchange for regular interest payments.
Bond Yield
The return an investor earns on a bond, expressed as a percentage, which can be calculated as current yield (annual interest ÷ current price) or yield to maturity (total return if held until maturity).
Inverted Yield Curve
Short-term bonds pay higher rates than long-term bonds. Recession predictor—has preceded every recession since 1950, usually by 12-24 months.
Present Value
The current worth of a future sum of money, calculated by discounting future cash flows at an appropriate interest rate.
Frequently Asked Questions
Common questions about the Bond Calculator
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⚠️ Important Disclaimer
This Bond Calculator provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.
The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.
This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA) for tax matters
- Licensed attorney for legal matters
- Registered Investment Advisor (RIA) for investment decisions
Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.
No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.